Jost Werke Se · XETR:JST
Jost Werke — Investor Presentation (April 2018)
27 slides from Jost Werke's investor presentation, Apr 10, 2018
Slide 1: Company presentation 2017
Company presentation 2017 Lars Brorsen (CEO) Christoph Hobo (CFO)
Slide 2: Disclaimer
Disclaimer THIS FINANCIAL REPORT IS BEING PROVIDED TO YOU SOLELY FOR YOUR INFORMATION. THIS FINANCIAL REPORT, WHICH HAS BEEN PREPARED BY JOST WERKE AG (THE “COMPANY”), SHOULD NOT BE TREATED AS GIVING INVESTMENT ADVICE AND MAY NOT BE REPRODUCED IN ANY FORM, PASSED ON OR OTHERWISE MADE AVAILABLE, DIRE
Slide 3: Business summary FY 2017
Business summary FY 2017 2
Slide 4: Business summary – FY 2017
Business summary – FY 2017 Group sales up 11% to €701.3m Europe up by 5% to €441.2m – Solid sales growth on an elevated level North America up by 8% to €118.5m – Rapidly recovering truck market boosted demand APA up by 37% to €141.6m – Growth driven by regulatory changes in China; other market
Slide 5: Company overview and key highlights
Company overview and key highlights 4
Slide 6: JOST – leading global supplier of safety critical truck and trailer solutions
JOST – leading global supplier of safety critical truck and trailer solutions FY 2017 Sales / CAGR (14-17A) Adj. EBIT2 / margin CF / Cash conversion3 €701m / 3.6%1 €76m / 10.9% €75m / 79.6% Sales by region4,5 Sales by application6 Sales by type Brazil JV; 6% AM and Trading ~25% Asia, Pacific and Tru
Slide 7: Overview of our main products
Overview of our main products Drawbar Varioblock Turntable Rockinger Agriculture Towing Hitch Coupling Drawbar Turntable Cross Member Cylinder Axles Container Technology, Supporting Leg Landing Gear Forced Steering King Pin Fifth Wheel Vehicle interface (74% sales) Handling solution (10% sales)7 Man
Slide 8: Key takeaways
Key takeaways Key investment highlights 1 Leadership – Global leadership in branded products 2 Attractive company growth – Market outperformance: upselling, market expansion and bolt-on M&A 3 Market growth – Sustained growth on the back of strong fundamentals 4 Diversification – High aftermarket con
Slide 9: Global leadership in branded products
1 Global leadership in branded products One of the leading global suppliers of truck and trailer systems with high market share in core segments JOST has a leading market position in Vehicle Interface systems >50% global market share in articulated truck trailer combinations market Fifth wheel Landi
Slide 10: Market outperformance: upselling, market expansion and bolt-on M&A
2 Market outperformance: upselling, market expansion and bolt-on M&A JOST’s strategy is focused on further enhancing its cash generative baseline business while developing advanced solution systems to provide long-term growth Business area development Example products Operational focus Integrated sy
Slide 11: JOST's successful strategy to outgrow the market
2 Market outperformance: upselling, market expansion and bolt-on M&A JOST’s successful strategy to outgrow the market JOST’s approach to outperform the market Manual landing gear E-Drive landing gear Increased content compared to base version (e.g >4x for landing gear) Higher content 1 Upselling t
Slide 12: Sustained growth on the back of strong fundamentals
3 Sustained growth on the back of strong fundamentals Truck and trailer in all other regions are expected to outperform GDP growth on the back of favorable long-term economic factors Macro factors supporting robust long-term sector growth Positive GDP and Growing share of road Regulation driving ren
Slide 13: China's truck overload restrictions positively impact demand
3 Sustained growth on the back of strong fundamentals China’s newly implemented truck overload restrictions positively impact truck and trailer demand in China Truck overload restrictions Traditional car carrier in China Implementation of new regulation on truck overload restrictions (GB1589) No
Slide 14: High aftermarket content and diversification by customer and geography
4 High aftermarket content and high diversification by customer and geography High resilience due to high customers fragmentation and leading AM business High customer fragmentation Attractive AM opportunity 51% Product Other Fifth Landing Top 25 Wheel Gear customers represent 49% of sales¹ AM value
Slide 15: Flexible and asset light business model
5 Flexible and asset light business model Ability to quickly adapt to changing market environment due to asset light and efficient supply and production platform Key parts of the value chain Number of variants1 20 100 100 1,500 On demand High capex Purchased Mech. Stage Design/ Forging and Quality L
Slide 16: Industry-leading margins and cash generation profile
6 Industry-leading margins and cash generation profile JOST has continuously outperformed the truck market since 2003 showing high profitability and strong cash generation JOST's performance over time Strong margin resilience High cash flow generation Indexed to 2003 Adjusted EBITDA margin (%) 400 T
Slide 17: Key financials
Key financials 16
Slide 18: Record year in JOST's history with strong improvement in margins
Record year in JOST’s history with strong improvement in margins Sales split by geography1 (€m) 2017 commentary CAGR: 10.8% /3.6% 10.6% 701 Growth (%) 650 634 Record sales performance. Growth 516 99 37.1% 142 driven by solid performance in 103 86 130 110 8.0% 119 Europe, high activity level in APA
Slide 19: Net working capital and cash generation
Strong cash generation profile supported by low capex spend and disciplined working capital planning Key financials overview Cash conversion1 72.6% 60.9% 76.4% 79.6% Cash flow1 (€m) Highly capital efficient business 75 model with strong cash conversion 51 47 60 FY2014A FY2015A FY2016A FY2017A Cape
Slide 20: Shareholder structure, balance sheet highlights, EPS and DPS
Shareholder structure, balance sheet highlights, EPS and DPS Shareholder structure1 Balance sheet highlights4 NIBC Bank 5,1% Black Diamond Equity ratio at the end of 2017 improved 5,1% significantly to 34% Bain Capital 4,6% Cash and cash equivalents increased by year end to €66.3m (2016: €47.2m)
Slide 21: 2017 targets reached – Outlook 2018
2017 targets reached – Outlook 2018 FY 2016 FY 2017 2017 Outlook 2017 Outlook 2018 (€m) (€m) vs. 2016 High single digit Mid single digit Sales 634 701 + 11 % growth growth Moderate double digit Mid single digit Adjusted EBIT 62 76 + 23% growth growth 18 19 Capex1 (% of sales) 2.0 – 2.5% of sales + 5
Slide 22: Appendix
Appendix 21
Slide 23: Group's sales and adjusted EBIT by quarter
Group’s sales and adjusted EBIT by quarter Sales (€m) Adj. EBIT (€m) 25,0 25,0 180,5 181,4 22,5 176,6 21,8 172,1 171,5 167,4 165,5 168,0 20,6 157,3 19,4 19,5 149,4 147,0 20,0 20,0 148,5 17,8 16,8 14,6 15,0 14,1 15,0 12,6 10,4 10,4 12,4% 12,0% 12,0% 10,0 11,4% 10,0 10,6% 11,0% 10,1% 9,3% 9,4% 7,1% 7,
Slide 24: Organic sales development
Organic sales development Sales FY (€m) Sales Q4 (€m) Sales growth (%) 11.2% -0.6% 17.4% -3.1% (4) 71 (5) 26 701 634 168 147 2016 Organic sales FX translation 2017 2016 Organic sales FX translation 2017 growth effects growth effects 23
Slide 25: Global leadership
Global leadership JOST’s leading market positions – focus on fifth wheel and landing gear JOST has a leading market position in Vehicle Interface systems Market shares by sales in OE business by geography Fifth wheel JOST position Landing gear JOST position Global 54% 46% 1 Global 56% 44% 1 Europe 1
Slide 26: Reconciliation of earnings
Reconciliation of earnings January 1 – Exceptional PPA January 1 – Shareholder Adjustments, (€m) December 31, (stock listing depreciation and December 31, loans total 2017 Unadjusted and other) amortization 2017 Adjusted Sales revenues 701.3 - 701.3 Cost of sale (508.0) 0.1 0.1 (507.9) Gross profit
Slide 27: Investor Relations - Contact
Investor Relations - Contact JOST Werke AG Romy Acosta Siemensstr. 2 63263 Neu-Isenburg Germany Phone: +49 6102 295-379 Fax: +49 6102 295-661 Mobile: +49 151 40264-878 romy.acosta@jost-world.com ir.jost-world.com 26